Navigating the Transition: Telecom Operators' Journey to Techcos
Insights from Swisscom's EVP: Navigating Telecom's Shift to Techcos
By Markus Reber - Executive Vice President of Networks at Swisscom
As Executive Vice President of Networks at Swisscom I've witnessed firsthand the monumental shift traditional telecom operators are undergoing as they strive to become "Techcos" in today's dynamic landscape. This transformation is not without its challenges, presenting a series of hurdles that operators must navigate adeptly to thrive in the digital age.
One of the most formidable challenges lies in the fierce competition posed by global "Big Tech" firms such as Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. This juxtaposition often feels like a David versus Goliath scenario, with traditional operators grappling to assert their relevance amidst tech giants wielding vast resources and influence.
Moreover, the transition to becoming a Techco demands a fundamental overhaul of corporate culture. Moving away from traditional hierarchical structures to embrace an agile mindset that champions digitalization and AI as core components is imperative. This cultural shift is essential for fostering innovation, adaptability, and responsiveness to the evolving needs of customers in an increasingly digital world.
Another critical aspect of this transformation involves breaking away from legacy processes and business models centered around access fees. Instead, operators must pivot towards models driven by value-added services that are easily scalable and capable of generating higher revenue streams. This shift requires strategic foresight and a willingness to embrace change to remain competitive in a rapidly evolving market.
Furthermore, securing revenue from established services is crucial for funding investment in innovative ventures and "moonshot" projects. This necessitates a delicate balance between maintaining existing revenue streams while simultaneously exploring new avenues for growth and innovation.
"The war for talent intensifies the transition for telecom operators, facing stiff competition from Big Tech companies for Swiss and international talents, adding complexity to the talent acquisition process."
Additionally, the war for talent and brain competition further complicates the transition for telecom operators. With Big Tech companies setting up headquarters in strategic locations like Zurich and Switzerland, operators like Swisscom face stiff competition in recruiting the best Swiss talents. Moreover, the geographical limitations to Switzerland intensify the competition for international talents, adding another layer of complexity to the talent acquisition process.
In conclusion, the journey towards becoming a Techco is fraught with challenges, but it also presents immense opportunities for traditional telecom operators to redefine their roles and solidify their relevance in the digital era. By navigating these challenges with agility, innovation, and strategic foresight, operators can position themselves as formidable players in the tech landscape of tomorrow.